Ford Said to Be in Talks to Sell Volvo Unit to China’s Geely

[Monseratto]

Will Volvo loose it's luster?

Feb. 5 (Bloomberg) -- Ford Motor Co., seeking to raise cash to avoid a federal bailout, is in talks to sell its Volvo Car unit to China’s Geely Automobile Holdings Ltd., according to three people familiar with the discussions.

Ford probably will get less than the $6.4 billion it paid for Sweden-based Volvo in 1999, said one of the people, who declined to be identified because the preliminary talks are confidential. Ford has also approached China’s Chery Automobile Co. and Chongqing Changan Automobile Co., the people said.

Dearborn, Michigan-based Ford lost a record $14.6 billion last year and is trying to avoid asking for government loans to survive as U.S. auto sales plunge to the lowest level in almost 27 years. Geely founder Li Shufu, 45, may want to buy Ford’s last European luxury brand after the addition of sedans to the Chinese automaker’s range of low-cost compacts helped boost profit “significantly” last year.

Volvo, based in Gothenburg, Sweden, has struggled as the global auto market declines and other automakers make gains in safety technology, a long-time strength for the automaker. Volvo’s U.S. sales fell 64 percent last year. Ford said Volvo had a pretax loss of $736 million in the fourth quarter.

Volvo, the maker of S80 sedans and C70 coupes, was once central to a failed strategy by Ford to reap a third of its profits from luxury autos. The automaker has been shedding European brands under Chief Executive Officer Alan Mulally, recruited from Boeing Co. in 2006.

Last June, Ford sold Jaguar and Land Rover to India’s Tata Motors Ltd. for $2.4 billion. It sold its Aston Martin luxury line for $931 million in May of 2007 to a group of investors.

http://www.bloomberg.com/apps/news?p...d=aTJ.Vbnt82a8

[tidus1203]

They don't have a choice. China might not be glamorous but they have the money and the West does not...

[Monseratto]

They don't have a choice. China might not be glamorous but they have the money and the West does not...

After seeing what's happening to the US banks that recieved TARP funds, natakot tuloy humiram ng pera sa US goverment. Big business hates being told how to run its affairs.

[coiter]

wow. bangketa sale ang ford a. no choice.

[Horsepower]

sana sa VW group na lang nila binenta. Sayang ang Volvo marque.

[AG4]

[SIZE="4"]China's Geely says no plans to buy Ford's Volvo brand[/SIZE]
Thu Feb 5, 2009 9:05am GMT
By Fang Yan

SHANGHAI (Reuters) - Chinese car manufacturer Geely Automobile Holdings Ltd (0175.HK) has no plans to buy the Volvo car brand from Ford Motor (F.N), a Geely spokesman said on Thursday.

"We don't have plans to buy Volvo as some media have reported," he told Reuters.

Media reports citing sources had earlier on Thursday said Ford, seeking to raise cash to avoid a bailout by the U.S. government, was in preliminary talks to sell its Volvo car unit to Geely.

A spokeswoman for Ford in China declined to comment.

General Motors (GM.N), owner of Saab and currently on life support from the Federal government to avoid bankruptcy, and Ford are trying to sell some of their assets amid a sharp downturn of the U.S. auto market. In January, the U.S. auto market was overtaken by China as the world's largest in terms of sales.

Industry sources say U.S. auto companies have approached a range of potential buyers in China, including SAIC Motor (600104.SS), but deals would be difficult to conclude because of high risks and also as the Chinese market is itself losing steam.

Car sales growth in the country slowed to a single digit rate in 2008 for the first time in at least 10 years, spurring government steps to bolster demand.

Executives at other potential buyers such as Changan Automobile Group, Dongfeng Motor Group (0489.HK) and Chery Automobile, had told Reuters they were monitoring the situation.

But they said they were unlikely to rush into any commitment due to the challenge and risk involved in turning around a global brand given the companies' limited international exposure.

Geely is a mid-sized car manufacturer in eastern China, making mostly small sedans. It owns about 23 percent of Manganese Bronze and 51 percent of a Shanghai-based joint venture with the UK company.

sana sa VW group na lang nila binenta. Sayang ang Volvo marque.

VW already has Audi.
Renault seems to be interested.

[SIZE="4"]Renault May Buy Volvo from Ford[/SIZE]
http://usnews.rankingsandreviews.com...lvo-from-Ford/